Business, international

Japanese government policies mask what ails economy

Article Abstract:

The policy of the Japanese government to continue with its aggressive stimulus measures aimed at promoting local investments is a futile attempt at fixing the real problem in its economy. The government must realize that such a 'pump priming' policy lacks the commitment for structural reform that is sorely needed for sustained long-term recovery. The policy, which has received the support of the other G-8 leaders, is seen as a political move by a government that is facing two crucial elections in 1999.

Succession in Tokyo may aid economy, enliven politics

Article Abstract:

Japanese Prime Minister Tomiichi Murayama's resignation might facilitate Trade Minister Ryutaro Hashimoto's ascension to the position. In addition, Hashimoto may be able to undertake better economic policies aimed at jumpstarting the country's stagnant economy. Moreover, Hashimoto' ascension could make Japanese politics more interesting, especially in light of long-term kingmaker Ichiro Ozawa's increase prominence as the top opposition figure.

Japan's MoF manages to evade deep reform

Article Abstract:

The strong ties between bureaucrats and politicians in Japan appear to have saved the Ministry of Finance (MoF) from a radical restructuring. While the team formed by the government to study the reform of the ministry has recommended a number of helpful measures, such as the revision of the Bank of Japan Law and improved transparency in policy-making, it failed to propose outright reform even though this is widely believed to be necessary.